RIM (Research In Motion Limited) is in serious problems these days. According to some analysts its stock price would be just $5 and they see little vision of enhancement. The company has made losses for the past two quarters and there is a slight chance of sudden improvement. This all looks like a business going to crash soon, but RIM could still survive from all this and can even become a competitor again.
It is definitely not easy, but all it needs to do is to take a lesson from the company like Apple which lost $1.2bn in September 1996. It was about 90 days from bankruptcy. It had too many staff and too many products. People were so convinced it was going to die that they were abandoning it for the only real rival. So RIM today is not too different from Apple then. Through following steps like the Apple did, there’s a way forward.
Slim down the number of products
When you are in trouble, reduce the complications of too many products, because that cuts out production and stock costs too.
Jobs cut a swathe through the bloated product range, reducing it to four.
Think of building the business rather than selling
Trying to think of selling the business distracts from running the business for the future. Apple was almost sold to Sun in its darkest days; if that had happened, it would now be a history. So ignore about the sale and get on with the work.
Abandon products which are not working
Time for RIM to abandon the Playbook, which has earned only 1.1m profit in a year while costing it billions in production and distraction.
This has to be done whether somebody likes it or not. Start with the marketing team and work outwards.
Forget about BlackBerry on Smartphone platform
Drop the idea of trying to sell pricey BB10 handsets in 2013. There is still a demand of RIM’s phones because of BlackBerry keyboard. There are also lots of corporate users who like the keyboard. Keep them happy; play for time.
RIM has to simplify its product line, cut its employees, hire a creative thinker and assemble the next great thing. If RIM can stop burning cash on lost causes like the Playbook, focus its spending on a few products, keep a core audience then it can come through this.